The Philippine government is investigating a recent series of kidnappings in which the kidnappers have demanded crypto as ransom.
In June, a 39-year-old Chinese marketing director at Suzhou Runmed Medical Technology and a 45-year-old Chinese-American entrepreneur traveled to the Philippines after being invited to participate in a business venture.
According to local Chinese sources, on June 21, the families of both victims received a call from the kidnappers demanding 15 million yuan (approximately $2 million U.S.), converted into Tether (USDT), a cryptocurrency designed to provide a stable price point at all-time ($USDT), be transferred to a specified account.
Later, despite a ransom payment of six million Philippine pesos, or approximately $109,000, the police confirmed both men were found dead near Manila.
In another instance, two foreign executives from the medical device industry were kidnapped. Like the previous victims, one victim was a Chinese executive. He and his Austrian-Chinese friend were also invited to the Philippines for business purposes. They were abducted, and the kidnappers demanded a ransom of 10 million pesos (around $182,000 US), of which six million Philippine pesos (approximately $109,000) were paid in USDT. Despite the payment of the ransom in USDT, the victims were also killed.
The two cases resulted in the Chinese Embassy collaborating with the Philippine law enforcement. During a press conference, the spokesperson for the Chinese Foreign Ministry expressed the urgency to enhance protective measures for Chinese nationals working closely with the embassy in Manila. "$1.5 million USDT Ransom Demand Leaves Chinese Entrepreneurs Missing and Dead" www.ccn.com (Jul. 10, 2024).
Commentary
The two cases suggest the responsible criminals are well organized and research their victims. Perhaps they are possibly related to, or in, the same organization.
To avoid these and similar risks while conducting business abroad, consider these steps:
Consider hiring a security. A vetted and experienced security company can significantly lower risk.
Make certain employees have received personal security orientation and training when traveling to higher risk localities.
Be wary of unsolicited business invitations, especially those that request a personal visit to a high-risk country or locality. Perform due diligence before any visit to determine that the invitation is genuine and not a set-up. Deeply vet all people you are scheduled to meet.
To the above point, kidnapping for ransom is usually planned and focused on a target. The perpetrators study the target's movements and determine vulnerabilities, sometimes via social media posts. Be careful what you post on social media, including upcoming travel plans.
Finally, wealth does not determine exposure to this risk. Middle-class executives and their families are also targeted. All executives should remain vigilant and vary their routines in higher risk localities.
